Wine sale site Lot18, a 100+ person company based in New York, has decided to shut down two verticals which haven’t shown strong performances: Gourmet and Experiences.A spokesperson for the company says the sections combined only contributed 5% to the company’s total revenue. Some of the products sold under these sections did perform well, such as glassware, and they’ll continue to be sold on Lot18 under other sections.
For now, Gourmet and Experiences will remain on Lot18’s navigation bar, but they’ll begin shutting down the verticals as soon as next week. The transition will be completed over the summer.
A company-wide announcement was made this afternoon; three employees were let go.
It’s been a transitional month for Lot18. Four executives including Lot18’s CMO departed in the last few weeks.
But when you’re a startup, you throw a lot at the wall and see what sticks. Lot18 is sufficiently funded with about $50 million from investors, so it won’t be going anywhere anytime soon.
“The really important thing is for us to focus on what we’re best at,” says a company spokesperson who says wine sales continue to remain strong.